At hearing in Albany, area restaurant owners and workers say tip credit should stay

Assemblywoman Mary Beth Walsh (R,C,I,Ref-Ballston) speaks at a press conference ahead of the subminimum wage hearing held by the state Department of Labor on Friday in Albany.
LAUREN HALLIGAN — LHALLIGAN@DIGITALFIRSTMEDIA.COM

ALBANY, N.Y. >> Individuals from the restaurant industry spoke their minds about the proposed elimination of the state’s tip credit at a subminimum wage hearing on Friday in Albany.

The hearing, which drew hundreds from the Capital Region and around the state, was an opportunity for people to testify and share their thoughts about the issue in front of representatives from the state Department of Labor, including Commissioner Roberta Reardon.

When Gov. Andrew Cuomo presented the proposal at the 2018 State of the State address, he directed the Commissioner of Labor to schedule public hearings to examine industries and evaluate the possibility of ending minimum wage tip credits, with an eye toward replacing tipping with an increased minimum wage.

Friday’s event was one of those hearings, the fifth in a series of six statewide.

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In Albany, government representatives heard both positive and negative feedback about the idea, though the majority of speakers at the local event seemed to be against the proposed tip credit elimination.

Restaurant Workers of America, The Business Council of NYS Inc. and the New York State Restaurant Association were some of the organizations present on Friday to speak out against the proposed change.

On the other hand, organizations like Make the Road, Northeast New York Coalition for Occupational Safety & Health and the Worker Justice Center were on the list of speakers there to support the tip credit elimination and the idea of an increased minimum wage.

In total, 217 people were scheduled to provide testimony at the hearing. This large group included restaurant employees and owners, along with other advocates.

In addition to the local community, participants traveled from Long Island, New York City, Buffalo, Syracuse, Lake Placid, Thousand Islands and other areas around the state to be part of the hearing.

The Saratoga Springs restaurant community had a large presence at the event. Representatives from DZ Restaurants, The Olde Bryan Inn, Longfellows, Hattie’s Restaurant, Wheatfields Restaurants and Panza’s Restaurant were all in Albany to support the tip credit. “I’m begging you to keep these people and myself able to provide their families with what they’ve been accustomed to and what they’ve earned. We deserve it,” said longtime Hattie’s Restaurant server Llona Hogan, at a pre-hearing press conference organized with Restaurant Workers of America.

At this gathering, held in the Capitol Building just before the hearing in the Legislative Office Building, several elected officials shared their support for the restaurants and employees in their fight against the tip credit elimination. They included Assemblywoman Carrie Woerner, Senator Kathy Marchione, Assemblyman John T. McDonald, Assemblywoman Mary Beth Walsh and state Sen. James Tedisco, who all shared the sentiment that there isn’t a problem that needs to be fixed, and the proposed change is unnecessary.

Local small-business owner Tim Taney, who operates Slidin’ Dirty in Troy and Schenectady, also provided testimony in favor of the current tip credit policy.

“Tipped restaurant workers are speaking up across the state and telling us that we are making a fair living wage and not asking for state government to change our way of life in adverse way,” he said in his statement. “The results are in from states across the U.S. where this policy has previously been enacted. They show decreased earnings for tipped workers, increased prices for consumers and restaurant closures for small businesses leading to fewer jobs in the market for all restaurant workers. Quite frankly, this is not good policy.”

He elaborated, “Restaurants like mine don’t operate with margins large enough to simply absorb this drastic wage increase. Price increases that can affect tip amounts and cuts in hours, benefits and jobs that affect all employees are potential devastating consequences of this proposal.”

In addition to providing comment, Slidin’ Dirty’s Troy restaurant closed on Friday in solidarity with tipped workers as part of a #518Blackout protest against the proposed elimination.

Some business owners feel differently.

Brian Keyser, who owns a Manhattan wine and cheese bar, shared his opinions in favor of the proposed elimination, saying that customers will not stop tipping if worker wages increase incrementally to the full minimum wage. “Your tips are not going to be taken away,” he said at the hearing, “You’re just going to get a raise.”

Keyser continued, “Increasing the tipped minimum wage, in fact any increase to minimum wage, pumps money into the economy, which is good for business. Business owners like myself should be in favor if that.” He added that paying employees well increases morale, reduces turnover and contributes to the overall health and happiness of employees.

Nieves Padilla, in association with nonprofit organization Make The Road, testified, “This isn’t a luxury, it’s necessary to create a just system for all workers in New York.”

One more subminimum wage hearing for the hospitality industry is scheduled to take place next month in the Bronx.

Written testimony can also be submitted for consideration via email before July 1 to hearing@labor.ny.gov.